Francis Atuche, a former Managing Director of the defunct Bank PHB has been sentenced to 6 years in prison for stealing the sum of N25.7bn belonging to the bank.
Recall that Bank PHB, formerly known as Platinum Habib Bank, was the fifth largest financial services provider in Nigeria. The bank’s assets were valued in excess of US$6 billion. The bank was formed in 2005 by the merger between Platinum Bank Plc and Habib Nigeria Bank Plc and since its inception, the bank pursued a strategy of expansion by the acquisition and creation of subsidiaries within and without its home country of Nigeria.
On August 5, 2011, the Central Bank of Nigeria revoked the operating licence of BankPHB along with that of Afribank and Spring Bank as they had not shown capacity and ability to recapitalize before the September 30, 2011 recapitalization deadline.
This gave birth to Keystone Bank Limited in August 5, 2011 by taking over all the assets (including subsidiaries) and liabilities of the now defunct BankPHB, whose commercial banking license had been revoked on the same day.
In the recent ruling against its former MD, Justice Lateef Okunnu of a Lagos High Court convicted Atuche, alongside a former Chief Financial Officer of the bank, Ugo Anyanwu on charges of conspiracy to commit a felony and stealing brought against them by the Economic and Financial Crimes Commission (EFCC).
The EFCC had dragged the former bankers to court over allegations that between November 2007 and April 2008, they stole about N25.7bn belonging to the bank.
The anti-graft agency had also claimed that they took about N14.7bn from the N25.7bn, by fraudulently describing it as a loan to some companies and subsequently converted the said sum to personal use.
The EFCC also alleged that another N11bn stolen by the defendants was used to purchase about 984,375,000 units of Bank PHB shares for themselves.
Justice Lateef Okunnu while delivering Judgement on Wednesday found the two guilty on grounds that the EFCC had successfully proved its case against the convicts beyond a reasonable doubt.
Okunnu rejected the claims of the defendants that they were merely professionally negligent.
“The defendants abused their powers, ignored established rules and regulations thereby putting the bank and depositors’ funds in danger.
“They corruptly took advantage of their positions to confer on themselves undue financial benefits without regard to the health of the bank,” she said.
The Judge, however, cleared Atuche’s wife on the charge of conspiracy and stealing brought against her by the anti-graft agency.
She averred that the EFCC failed to link her to the crime and insisted that suspicion no matter how strong cannot take the place of fact.
The convicted ex-MD, Atuche, wailed;
“I plead for mercy, leniency, your kindness, and I plead that out of your kindness and generosity, you will not allow me to go to jail.
“I am sorry and remorseful,”
“I pray that God will place in your heart to be kind.
“I plead from the bottom of my heart. I’m extremely sorry; today will be a turning point in my life, I’m very sorry,”
“What I achieved in the banking industry is by stint of hard work. I have suffered in the last 10 years of this trial.
“I am sorry if I was appearing cocky in the witness box during my examination-in-chief.
“I have two kids who are barely teenagers. They look up to their father, and I wonder what kind of impact this will have on them.
“Please temper justice with mercy,”
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